CNBC’s Jim Cramer said Wednesday he thinks many investors are wrong about twelve companies that were historically considered cyclical stocks.
“These are not your father’s cyclicals,” Cramer said.
Historically, Cramer said, these stocks tended to be swayed by the broader macroeconomic picture, and by prognostications from Federal Reserve officials. But Cramer says this “dirty dozen” isn’t so dirty anymore.
Here are the twelve stocks that Cramer thinks aren’t as cyclical, and have made major strides toward repositioning themselves.
- Cummins and Ingersoll Rand, which Cramer said are both major engine manufacturers that have pivoted towards a zero-emissions, industrial future.
- Cleveland-area manufacturers Eaton and Parker-Hannifin. Cramer said he used to bet against Eaton in down cycles because they were a manufacturer of connectors and gauges, but now both companies are focused on sustainability.
- Carrier and Trane, two companies Cramer said he “couldn’t be more wrong” about. Cramer pointed to their efforts to transform air conditioning into a greener product.
- Caterpillar, with a new focus on data science.
- Dover, which Cramer now says is about “clean energy.”
- Paccar, which is moving into battery-powered trucks.
- Johnson Controls, which Cramer said has an emphasis on sustainability, safety, and security.
- United Rentals, which Cramer said ticks multiple boxes for ESG benchmarks.
- Rockwell Automation, which is moving to become a global leader in digital transformation, according to a company press release.
These companies have figured out how to head off decarbonization and move towards sustainability, Cramer said.
“The transformation is real,” he said. “Saving the planet’s become a much more reliable business than despoiling it.”